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You may be a little behind in retirement saving - or a lot. Either way, you know you need to catch up, and you know it's up to you.
Fortunately, there's help! You can rely on advice from a financial professional as well as strategies others have used in your situation:
Maximize contribution limits
Do you actually know how much you're permitted to save in your employer savings plan and/or an IRA? If you don't know, find out now. And if you know but aren't saving to the max, get with the program! It's your future, so save for it.
Save outside your retirement plans, too
If you're really worried that you aren't saving enough, you're probably not. So tighten that belt, roll up those sleeves, and do whatever else you need to save more:
- Make the commute coffee at home and save the daily coffee-stop cash.
- Make, don't buy, lunch. Save the lunch money.
- Work out at home, drop the gym dues, and save that amount every month.
- Rent videos - save the difference between theater tickets and the rental. (Don't forget to save the popcorn and drink money, too.)
- If you take two vacation trips a year, cut down to one and put aside the money you save.
- Save your bonus. You haven't budgeted for it, so don't spend it.
- Save your raise. You haven't relied on it before, so you already know you can live without it.
- Make a budget and stick with it. It may be boring, but the rewards can be exciting.
You get the idea....In general, to help avoid a dramatic down-scaling in lifestyle once you retire, make moderate changes now.
None of these actions can support a full retirement, but together they can really add up. If you don't believe it, check the Calvert Retirement Planner. be sure to set the rate of return appropriately for saving outside a tax-advantaged plan.
Plan to work longer
It may not be the most welcome solution, but if you're significantly behind in retirement saving, putting off retirement can help. If working full time isn't in the picture, definitely consider working part time - perhaps in a different job. Consider talking with a job counselor sooner rather than later if you believe working longer is part of your future but you don't want to continue in the kind of job you currently have.
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